The threat of inflation is real. It is just a different threat than many realize.
For the U.S., the danger isn’t necessarily an inflationary outbreak””marked by an upward wage-price spiral””so much as a standard-of-living shock. Indeed, household income has barely outpaced inflation since 1975, and gains are largely due to women entering the work force. Median income for men was actually higher, in real terms, in 1973 than in 2009.